Policy on collection of Dues
1. Introduction
:
The debt collection policy of the
Bank is built around dignity and respect to customers. Bank will not follow
policies that are unduly coercive in collection of dues. The policy is built on
courtesy, fair treatment and persuation. The Bank believes in following fair
practices with regard to collection of dues and repossession of security and
thereby fostering customer confidence and
long-term relationship.
The
repayment schedule for any loan sanctioned by the bank will be fixed taking
into account your paying capacity and cash flow pattern. The bank will explain
to you upfront the method of calculation of interest and how the Equated
Monthly Installments (EMI) or payments through any other mode of repayment will
be appropriated against interest and principal due from you. The bank would
expect you to adhere to the repayment
schedule agreed to and approach the bank for assistance and guidance in case of
genuine difficulty in meeting repayment obligations.
Bank’s
security repossession policy aims at recovery of dues in the event of default
and is not aimed at whimsical deprivation of the property. The security
repossession procedure would be set in motion only after all attempts by the
bank to discuss with you the ways and means to overcome the financial hurdles
have failed. The policy recognizes fairness and transparency in repossession,
valuation and realization of security. All the practices adopted by the Bank
for follow up and recovery of dues and repossession of security will be
inconsonance with the law.
2. General
Guidelines
All
the members of the staff or any person authorized to represent our Bank in
collection or/and security repossession would follow the guidelines set out
below:
i)
You would be
contacted ordinarily at the place of your choice and in the absence of any
specified place, at the place of your residence and if unavailable at your
residence, at the place of business/occupation.
ii)
Identity and authority of persons authorized
to represent bank for follow up and recovery of dues would be made known to
you at the first instance. The bank staff or any persons authorized to
represent the bank in collection of dues or
/ and security repossession will identify
himself / herself and display the authority letter
issued by the bank upon request.
iii)
The bank would
respect your privacy.
iv)
The bank is
committed to ensure that all written and verbal communication with you will be
in simple business language and bank will adopt civil manners for interaction
with borrowers.
v)
Normally the
bank’s representatives will contact you between 0700 hrs and 1900 hrs, unless
the special circumstance of your business or occupation requires the bank to
contact at a different time.
vi)
Your request to
avoid calls at a particular time or at a particular place would be honoured as
far as possible.
vii)
The bank will
document the efforts made for the recovery of dues and the copies of
communication sent to you, if any, will be kept on record.
viii)
All assistance
will be given to resolve disputes or differences regarding dues in a mutually
acceptable and in an orderly manner.
ix)
Inappropriate
occasions such as bereavement in the family or such other calamitous occasions
will be avoided for making calls / visits to collect dues.
3. Giving
notice to borrowers
While written communications, telephonic reminders or
visits by the bank’s representatives to your place or residence will be used as
loan follow up measures, the bank will not initiate any legal or other recovery
measures including repossession of the security without giving due notice in
writing. Minimum 60 days time will be given to you to pay the debt failing
which the bank will proceed to take possession of the asset. The notice shall
be given by Registered Post with Acknowledgement Due. However, where the Bank
has reasons to believe that you are avoiding acknowledgement, it will follow
all such procedures as required under law for recovery / repossession of
security.